When the FBI Comes Calling…®

MONEY LAUNDERING (Continued)

18 U.S.C. § 1956 (2007)

The Crime
There are quite a few ways to violate section 1956.

Section 1956(a)(1)
Under subsection (a)(1) it is a crime for a person, "knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity" to:

  • conduct or attempt to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity-
    • with the intent
      • to promote the carrying on of specified unlawful activity, 18 U.S.C. § 1956(a)(1)(A)(i); or
      • with intent to engage in conduct constituting a violation 26 U.S.C. §§ 7201 or 7206 (relating to the Internal Revenue Code), 18 U.S.C. § 1956(a)(1)(A)(ii) ; or
    • knowing that the transaction is designed in whole or in part-
      • to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity, 18 U.S.C. § 1956(a)(1)(B)(i); or
      • to avoid a transaction reporting requirement under State or Federal law. Id. § 1956(a)(1)(B)(ii).

Section 1956(a)(2)
Under subsection (a)(2), it is a crime for a person to

  • transport, transmit, or transfer, (or attempt to transport, transmit, or transfer) a monetary instrument or funds from a place in the United States to or through a place outside the United States or to a place in the United States from or through a place outside the United States-
    • with the intent to promote the carrying on of specified unlawful activity, 18 U.S.C. § 1956(a)(2)(A); or
    • knowing that the monetary instrument or funds involved in the transportation, transmitting or transfer represent the proceeds of some form of unlawful activity and knowing that such transportation, transmission, or transfer is designed in whole or in part-
      • to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity, Id. § 1956(a)(2)(B)(i); or
      • to avoid a transaction reporting requirement under State or Federal law. Id. § 1956(a)(2)(B)(ii).

Section 1956(a)(3)
Under subsection (a)(3), it is a crime for a person to have the intent to

  • promote the carrying on of specified unlawful activity, 18 U.S.C. § 1956(a)(3)(A);
  • conceal or disguise the nature, location, source, ownership, or control of property believed to be the proceeds of specified unlawful activity, Id. § 1956(a)(3)(B); or
  • avoid a transaction reporting requirement under State or Federal law, Id. § 1956(a)(3)(C),
and
  • conduct or attempt to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, or property used to conduct or facilitate specified unlawful activity. Id. § 1956(a)(3).

Money Laundering Continued-->